1099s Repealed for Corporations! So Do You Need to File Them at All?

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By Stacey Gorowitz, CPA, MBA Although the IRS officially repealed the onerous expanded information reporting requirements for payments made to corporations, the stakes are higher with enhanced penalties for failing to file 1099s when required. Here’s a brief summary explaining when and to whom you do need to file Form 1099 for 2013: When: 1099s are required to be sent to vendors by January 31, 2014 and the corresponding 1099s and summary form 1096 are required to be sent to the IRS by February 28, 2014. Who: All individuals and partnerships including certain corporations to whom you’ve paid $600 or more during the year must be issued a 1099. Individuals would include nonemployees (EX:  Day laborers or subcontractors), etc. Additionally, 1099 reporting is also required for: Rental payments for office space, as well as equipment and machinery. Royalties paid of $10 or more are also included in the 1099 reporting requirement. There are a few exceptions to the general … [Read more...]

2014 – IRS Standard Mileage Rates Announced

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By Stacey Gorowitz, CPA, MBA It’s time to reveal the long-awaited IRS standard mileage rates for 2014. And they are (drumroll, please): 56 cents per mile for the optional business standard mileage rate 23.5 cents per mile for qualified medical and moving expenses 14 cents per each mile driven for charitable purposes Let the celebrations begin! But wait – aren’t some of those numbers lower than last year’s rates? Yes, your memory does not deceive you. The IRS has reduced the optional business standard and medical/moving expense rates from their 2013 levels of 56.5 and 24 cents per mile, respectively. (The charitable miles rate remains the same.) With gas prices generally trending lower than they have been in recent years, the IRS thought it prudent to reduce mileage cost deduction rates to reflect the change. … [Read more...]

QuickBooks 2013: Just Another Upgrade or a Must Have?

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By Candace Spencer, CPA & Certified QuickBooks ProAdvisor QuickBooks is by far the most widely used accounting software for small businesses and individuals. Each year Intuit releases a new QuickBooks’ edition with additional improvements, enhancements and let's not forget…some really cool features. This article will provide you with the tools to decide whether it’s time to upgrade your QuickBooks. It will also highlight the major improvements as well as the new features in QuickBooks 2013. As of May 31, 2013, QuickBooks 2010 is scheduled to be “sunsetted.” This is Intuit’s fancy way of saying that as a new version is released, they will no longer support or provide technical assistance for a particular version that is several years older. Also, certain features in the older, sunsetted versions will no longer function. These include bill pay, online banking, accountant’s copy file transfer, payroll services, credit card processing and emailing of customer invoices through … [Read more...]

You Can’t Transfer Tax Attributes – Or Can You?

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Did you pay a lot in state taxes this year? You can potentially save 10% or more. Sounds like one of those too good to be true commercials, doesn’t it?  The majority of my blogs try to dissuade tax myths and educate business owners and individual taxpayers on some of the nuances of tax law, but this unlikely-sounding scenario is no myth. Normally, the income, expenses and credits you earn are yours and can’t be transferred to someone else – not even your children. However, there is one situation where one taxpayer can acquire the tax attributes of another: state tax credits. Georgia has a law that allows certain tax credits earned by one taxpayer (usually a company) to be purchased at a discount and used by another taxpayer (usually an individual). That’s right, you can purchase tax credits. For example, an individual taxpayer can purchase $50,000 of GA Entertainment Tax Credits for $45,000. You write a check for $45,000 but a credit of $50,000 gets reported on your Georgia … [Read more...]